FOR IMMEDIATE RELEASE
City Auditor finds Zenith Energy violated lobbying regulations in 2022
Today, Auditor Simone Rede issued a warning letter that found Zenith Energy violated the City’s lobbying regulations in 2022.
The Elections Office, part of the Auditor’s Office that oversees the City’s lobbying regulations, received a complaint in August 2023, alleging that Zenith Energy had engaged in lobbying communications with City officials and failed to register and report the communications as required. Zenith Energy is a bulk liquid storage/fuel products transloading facility that receives, stores, and distributes fuels out of a terminal in NW Portland. In 2021, Zenith Energy pursued and was denied a required City permit to continue its operations, known as a Land Use Compatibility Statement (LUCS), from the City’s Bureau of Development Services. The Bureau noted in its denial that Zenith’s permit did not meet the City’s climate goals. In 2022, Zenith again applied for a LUCS with the Bureau and was eventually granted approval. The 2022 LUCS permit and the communications involved in its approval were the focus of this investigation.
Under City Code (Chapter 2.12 Regulation of Lobbying Entities), lobbying means attempting to influence the official action of City officials. Such activity is required to be reported once a lobbying entity has reached the specified thresholds—8 hours or $1,000 spent in any given quarter lobbying).
The Elections Office’s investigation showed that in the 3rd quarter of 2022, Zenith Energy lobbied City officials beyond the 8-hour threshold. During this time, Zenith facilitated a site tour and engaged in several meetings with City officials to gain good will and advance approval of its permit. It did not register or report those hours.
“Portlanders can thank the complainant for raising their concern to the City Elections Office. The public deserves to know who is trying to influence City decisions. That’s why lobbyist registration and reporting requirements exist,” said City Auditor Simone Rede.
The Auditor’s Office encourages any entity who expects to reach the City’s lobbying thresholds to register at the beginning of each calendar year.
Registration and reporting is free and can be done online.
The warning letter to Zenith Energy is posted on the Elections office's webpage per standard practice, as is Zenith’s response to initial findings. The letter recommends Zenith review the City’s lobbying regulation requirements and participate in training provided by the Auditor’s Office.
About the investigation
When complaints are received by the Elections Office, which is housed in the Auditor’s Office, the information provided is reviewed and the Elections Office determines if a formal investigation is warranted. In this case, it was found that an investigation was necessary.
For more information about the City’s lobbying regulations, including what does and does not qualify as lobbying activity and how to report such activity, see City Code 2.12.020 and the adopted lobbying rules.
City Elections can be reached at Elections@PortlandOregon.gov or 503-823-4022.